My father will retire from his job in 2 months. He once asked me, about “what is higher pension scheme in EPF?” So I started my research about the same to help him out in planning his finances. Let me share my insights about the same;
What is EPFO higher pension scheme?
The government-sponsored programme gives EPF members the choice to boost their pension fund contributions. Members can enhance their monthly pension amount over and above the ordinary pension granted by the EPS by selecting the EPF Higher Pension Scheme.
The member's additional contribution is placed in a different pension fund, where it is invested and accrues income over time. As a result, the total pension amount accumulated increases, resulting in a greater monthly pension payment upon retirement.
How to apply for higher EPS pension?Visit the
EPFO Unified Memberportal, employees.
Select the option for "Pension on Higher Salary: Online application for Joint Option Validation."
Fill out the form's fields and submit it.
Applications are subject to verification, and increased pensions will only be granted with EPFO officials' permission.
The higher pension is computed in accordance with the EPFO calculation using the pensionable salary and the pensionable service time.
Calculate your EMI on a home loan via the NoBroker EMI calculator The formula for calculating a higher pension:Pensionable wage multiplied by pensionable years and divided by 70.
After understanding what is higher pension scheme, I’d like to say that it is important to remember that participation in the EPF Higher Pension Scheme is optional and that members can decide whether or not to do so based on their financial objectives.
Apply for a home loan at lowest interest rates through NoBroker Home Loan servicesRead More:
What is National Pension Scheme: What is NPS? How to withdraw pension contribution in epf after leaving the job? Can I Open Both NPS and Atal Pension Yojana?Your Feedback Matters! How was this Answer?
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What is Higher Pension Scheme?
Sunderasan
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2 Year
2023-07-30T15:46:27+00:00 2023-08-01T08:09:25+00:00Comment
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